Universities around the country are struggling in the current economy, and many have lost a great deal of money in their endowments. To counteract the losses in their endowments, many universities are deciding to sell bonds.
Today, a Bloomberg report states that Princeton and Harvard are leading the rush to sell bonds, both selling over $1 billion each in recent weeks, in order to counteract hits their endowments have taken in the falling market.
The same report says the University of Notre Dame raised $150 million through the sale of bonds this week as well.
Scott Malpass, the Chief Investment Officer for Notre Dame, told NewsCenter 16 today that their bond sale is routine activity for the school, and not related to any losses in their endowment.
The investment website for Notre Dame says their endowment is the 14th largest in higher education, and the largest at a Catholic institution.
The Bloomberg report goes on to say schools like Harvard and Princeton are looking to raise more money as income from their endowments is on the decline. Proceeds from bond sales can be used to fund operations and can allow the schools to hold onto other investments, like real estate, which they hope will recover value over time.
The average college endowment has lost 25-30% since the end of June 2008.
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